Revocable Living Trust Planning

A revocable living trust sometimes simply called a living trust is a legal entity created to hold ownership of an individual s assets.

Revocable living trust planning. Also known as a living trust a revocable trust can help assets pass outside of probate yet allows you to retain control of the assets during your the grantor s lifetime. There are many types of trusts. Motley fool returns stock advisor s p 500. What is a revocable living trust.

Revocable trusts commonly called living trusts are an effective estate planning tool for avoiding the costs and hassles of probate preserving privacy and preparing your estate for ease of. This is the major drawback to using a revocable living trust for many people but it s not worth the time money and effort to create one if the trust isn t fully funded. When the grantor of a revocable trust dies the trust lives on indefinitely to carry out the grantor s wishes. What is a living trust.

The trust can be amended or revoked as the grantor desires and is included in. Most living trusts are revocable because you can change them as your circumstances or wishes change. The person who forms the trust is called the grantor or the trustmaker and they also serve as the trustee of this type of trust in most cases controlling and managing the assets they ve placed there. A major distinction between them is whether they are revocable or irrevocable.

Of course the trust should provide for successor trustees at the death of the. A revocable living trust is a popular estate planning tool that you can use to determine who will get your property when you die. Revocable living trusts are living because you make them during your lifetime. A living trust is a legal document that just like a will contains your instructions for what you want to happen to your assets when you die.

It is flexible and can be dissolved at any time should your. A revocable trust is a part of estate planning that manages and protects the assets of the grantor as the owner ages. A revocable living trust can be a useful estate planning tool so take the time to investigate whether it pays to set one up.